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Expand Your Employer of Record Services In Costa Rica
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Expand Your Employer of Record Services In Costa Rica
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Costa Rica At a Glance
Costa Rica At a Glance
Costa Rica At a Glance
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Easily navigate Costa Rica Employment Landscape
Easily navigate Costa Rica Employment Landscape
Easily navigate Costa Rica Employment Landscape
Discover everything you need to know about working in Costa Rica with practical, trustworthy resources for employees and employers. We explain Costa Rica’s core employment rules (working hours, overtime, leave, and termination basics) based on guidance from the Ministry of Labour and Social Security (MTSS), plus what foreign nationals need to work legally through Costa Rica’s immigration and residence/work authorization processes.
Weekly Working Hours
National Holidays
Leave
Types of Employment
Employment Costs
IC Class Factors
Labor Leasing
Minimum Wage
Medical Benefits
Probationary Periods
Termination Notice
Severance
Understanding Weekly Working Hours in Costa Rica
Explore Work hours Employee rights in Costa Rica
Explore Work hours Employee rights in Costa Rica
Explore Work hours Employee rights in Costa Rica
In Costa Rica, working hours are regulated under the Labour Code, with the standard workweek generally set at 48 hours, typically structured as 8 hours per day for daytime work. Different limits apply for night work and mixed shifts, which have lower maximum daily hours to protect employee health.
Any hours worked beyond the legally permitted daily or weekly limits are considered overtime and must be compensated at a minimum premium of 50% above the regular hourly wage (time-and-a-half). Overtime is intended for exceptional or temporary situations and is subject to legal limits to prevent excessive working hours. While the Labour Code sets the baseline, collective agreements or company policies may provide more favorable overtime rates or compensatory rest.
Public Holidays and Employee Leave in Costa Rica
Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave
In Costa Rica, employees are entitled to paid public holidays, allowing time off to observe national and religious celebrations. Alongside public holidays, the Labour Code provides a range of statutory leave entitlements designed to support employee well-being and family life.
Workers are entitled to paid annual leave, paid sick leave, and maternity leave, with job protection and benefits defined by law. Costa Rica also provides paternity leave and additional family-related protections. In specific circumstances, employees may receive special paid leave for events such as marriage, bereavement, childbirth, jury duty, or other legally recognised personal obligations, subject to documentation and employer policies.
Understanding Weekly Working Hours in Costa Rica
Explore Employment Contracts & Costs in Costa Rica
Explore Employment Contracts & Costs in Costa Rica
Explore Employment Contracts & Costs in Costa Rica
In Costa Rica, employers are required to formalize employment relationships through clear employment contracts that define job duties, salary, working hours, benefits, and workplace conditions, in line with the Costa Rican Labour Code. While employment contracts may be written or verbal, written contracts are strongly recommended—especially for fixed-term, part-time, or specialized roles—to ensure legal certainty and compliance.
Types of employment
Permanent (indefinite) employees
Fixed-term employees
Temporary or agency workers
Independent contractors, engaged under civil or service agreements and not covered by standard employee protections
From a cost perspective, employing staff in Costa Rica involves mandatory employer contributions in addition to gross salary. Employers must contribute to the Costa Rican Social Security Fund (CCSS), which covers health insurance, pensions, and occupational risk insurance. These statutory contributions typically add around 25%–27% to the total employment cost, depending on salary level and risk classification.
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ICC classifications, labor leasing, and wage rules in Costa Rica
Labor Regulations & Independent Contractor Classification in Costa Rica
Labor Regulations & Independent Contractor Classification in Costa Rica
Labor Regulations & Independent Contractor Classification in Costa Rica
Freelancers operate autonomously, controlling their own schedules, methods of work, tools, and the ability to delegate or substitute tasks. A service contract is also independent in nature but is typically result-focused, aiming to deliver a specific service or project under clearly defined terms.
Labor Leasing
In Costa Rica, assigning workers to perform duties at a third-party workplace—commonly referred to as labour outsourcing or temporary staffing—is permitted but strictly regulated. Companies providing outsourced or temporary workers must comply with labour, wage, and social security (CCSS) obligations. The hiring company may be held jointly liable if labour or social security requirements are not properly met.
Minimum Wage Requirements
Costa Rica enforces a statutory national minimum wage, which is set and updated periodically by the government based on occupation and skill level. Employers must comply with the applicable minimum wage category for each role. While collective agreements or company policies may provide higher wages, they cannot fall below the legally established minimums.
How pay and health coverage apply during employee illness in Costa Rica
Medical Benefits in Costa Rica
Medical Benefits in Costa Rica
Medical Benefits in Costa Rica
In Costa Rica, employee sick leave and medical income protection are managed through a social security–based system, rather than extended employer-paid salary continuation.
When an employee is unable to work due to illness or non-work-related injury, the process works as follows:
Days 1–3 of sick leave: Paid by the employer at 50% of the employee’s salary, provided a valid medical certificate is submitted.
From day 4 onward: Income support is paid by the CCSS as a temporary disability subsidy (incapacidad).
The CCSS subsidy is generally paid at 60% of the employee’s reported salary, subject to social security rules and caps.
For work-related accidents or occupational illnesses, wage replacement and medical care are covered through Costa Rica’s occupational risk insurance system, with benefits typically starting from the first day of incapacity.
Key rules governing probation duration and employer notice requirements.
Probationary Periods & Termination Notice in Costa Rica
Probationary Periods & Termination Notice in Costa Rica
Probationary Periods & Termination Notice in Costa Rica
In Costa Rica, employment contracts may include a probationary period of up to three months, provided it is clearly agreed at the start of employment. During this probation period, either the employer or the employee may terminate the employment without severance liability, although accrued wages and benefits must still be settled.
Termination Notice Periods After Probation in Costa Rica
Once the probation period ends, statutory notice requirements (preaviso) apply and are based on the employee’s length of continuous service:
3 to 6 months of service: 1 week’s notice
6 months to 1 year: 15 days’ notice
More than 1 year: 1 month’s notice
Employers may choose to provide payment in lieu of notice instead of requiring the employee to work through the notice period. In cases of termination without just cause, employees are also entitled to statutory severance pay (cesantía) in addition to notice.
How termination compensation and background screening are regulated under Austrian labor law
Severance Pay & Pre-Hire Checks in Costa Rica
Severance Pay & Pre-Hire Checks in Costa Rica
Severance Pay & Pre-Hire Checks in Costa Rica
In Costa Rica, severance pay is not accumulated through monthly employer contributions or a centralized severance fund. Instead, severance—known as cesantía—is calculated and paid at the time of termination when an employee is dismissed without just cause.
Severance entitlement is based on the employee’s length of service and average salary, and is paid in addition to:
Payment in lieu of notice (preaviso), if applicable
Accrued vacation pay
Outstanding wages and statutory benefits
The exact severance amount increases progressively with years of service, as defined under Costa Rican labour law. Employees dismissed with just cause are generally not entitled to severance, although earned benefits must still be settled.
